Database

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INDONESIA

Since September 2022, entry into force in October 2022

Pillar Cross-border data policies  |  Indicator Conditional flow regime
Law No. 27 of 2022 on Personal Data Protection (Undang-undang Nomor 27 Tahun 2022 tentang Pelindungan Data Pribadi)
Art. 56 of Law No. 27 on Personal Data Protection allows the cross-border transfer of personal data from a controller to a controller and/or processor outside the jurisdiction of Indonesia if the recipient country has an adequate level of protection. If the country is not adequate, the controller must ensure an adequate and binding personal data protection. Alternatively, the controller must obtain the consent of the data subject.
Coverage Horizontal

INDONESIA

Since October 2019

Pillar Intellectual Property Rights (IPRs)  |  Indicator Mandatory disclosure of business trade secrets such as algorithms or source code
Government Regulation No. 71/2019 on the Provision of Electronic System and Transaction (Peraturan Pemerintah (PP) Nomor 71 Tahun 2019 Penyelenggaraan Sistem dan Transaksi Elektronik)
Government Regulation No. 71/2019 mandates that providers of bespoke software must either provide or escrow the source code associated with their services. This requirement has been in effect since the introduction of Government Regulation No. 82/2012, which was later replaced by Regulation No. 71/2019.
Coverage Software

INDONESIA

Since December 2000, entry into force in December 2000

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Law No. 30 of 2000 on Trade Secrets (Undang-undang (UU) Nomor 30 Tahun 2000 tentang Rahasia Dagang)
Law No. 30 of 2000 provides a framework for effective protection of trade secrets.
Coverage Horizontal

INDONESIA

Reported in 2017, last reported in 2024

Pillar Telecom infrastructure & competition  |  Indicator Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is an obligation for passive infrastructure sharing in Indonesia to deliver telecom services to end users.
Coverage Telecommunications sector

INDONESIA

Since June 2003, last amended in 2022
Since February 2021, last amended in May 2021
Since March 2013, last amended in February 2021

Pillar Telecom infrastructure & competition  |  Indicator Maximum foreign equity share for investment in the telecommunication sector
Law of the Republic of Indonesia No. 19 of 2003 Concerning State-owned Enterprises (Undang-Undang Republik Indonesia Nomor 19 Tahun 2003 Tentang Badan Usaha Milik Negara)

Presidential Regulation No. 10 of 2021 on Business Fields Open to Investment (Peraturan Presiden Republik Indonesia Nomor 10 Tahun 2021 Tentang Bidang Usaha Penanaman Modal)

Regulation of The Government of the Republic of Indonesia No. 15 of 2013 on Implementation of Law No. 38 of 2009 on Post (Peraturan Pemerintah Republik Indonesia Nomor 15 Tahun 2013 Tentang Pelaksanaan Undang-Undang Nomor 38 Tahun 2009 Tentang Pos)
According to Presidential Regulation No. 10/2021, the telecommunications sector was liberalised, allowing full foreign ownership of telecommunication service providers and telecommunication towers. However, according to Art. 1.2 and 77 of the State-owned Enterprises Act 19/2003, there is a limit of 49% on the shares that can be acquired by foreign investors in government-controlled firms. This includes foreign participation in state-owned entreprisese (SOEs) in the telecommunication sector, as regulated in Government Regulation No. 15/2013, amended by Government Regulation No. 41/2021.
Coverage State-owned entreprises in the telecom sector
Sources

INDONESIA

Reported in 2020, last reported in 2024

Pillar Telecom infrastructure & competition  |  Indicator Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in the telecom sector
The Government of Indonesia holds a majority equity stake in the telecommunications company Telkom Indonesia, owning approximately 52% of its shares.
Coverage Telecommunications sector

INDONESIA

N/A

Pillar Telecom infrastructure & competition  |  Indicator Functional/accounting separation for operators with significant market power
Requirement of accounting and functional separation for dominant network operators
Indonesia mandates functional and accounting separation for operators with significant market power (SMP) in the telecom market.
Coverage Telecommunications sector

INDONESIA

Since April 1994

Pillar Telecom infrastructure & competition  |  Indicator Signature of the WTO Telecom Reference Paper
WTO Telecom Reference Paper
Indonesia has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector

INDONESIA

Reported in 2017, last reported in 2025

Pillar Telecom infrastructure & competition  |  Indicator Presence of an independent telecom authority
Lack of an independent telecom authority
It is reported that Indonesia lacks a telecommunications authority whose decision-making process is independent of the government. In general, matters relating to telecommunications are regulated and supervised by the Ministry of Communication and Digital.
Coverage Telecommunications sector

INDONESIA

Since February 2012

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Nationality/residency requirement for directors or managers
Ministry of Manpower and Transmigration Regulation No. 40/2012
The Ministry of Manpower and Transmigration Regulation No. 40/2012 specified 19 positions that are reserved for Indonesian nationality only, ranging from Chief Executive Officer to various directors, managers, and supervisors positions within a company.
Coverage Horizontal

INDONESIA

Since March 2014, last amended in November 2020
Since August 2007, last amended in December 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Commercial presence requirement for digital services providers
Law of the Republic of Indonesia No. 7/2014 About Trade (Trade Act)

The Law of the Republic of Indonesia No. 40 of 2007 Concerning Limited Liability Company
Pursuant to Art. 24 of the Trade Act and Art. 5 of the Limited Liability Company Act, all exporters and importers are subject to a licence issued by the government, which is subject to a commercial presence requirement.
Coverage Horizontal

INDONESIA

Since March 2016

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Commercial presence requirement for digital services providers
Ministry of Communication and Informatics Circular Letter No. 3/2016
The Ministry of Communications and Informatics issued Circular Letter No. 3/2016 on 31 March 2016, establishing the regulatory framework for the delivery of application and content services via the Internet, commonly referred to as Over the Top (OTT) Services. The Circular categorises OTT Services into two main types. The first, OTT Application Services, involves the use of internet protocol-based telecommunications networks to provide functions such as text messaging, voice and video calls, online chatting, financial transactions, data storage, gaming, social networking, and related services. The second, OTT Content Services, encompasses the provision of digital information in formats such as text, sound, images, animations, videos, music, films, and games, delivered via streaming or downloads over telecommunications networks.
According to Section 5.3 of the Circular, foreign individuals or business entities may provide OTT Services only if they establish a Permanent Business Entity in Indonesia, in compliance with the country’s prevailing tax regulations. Furthermore, the Circular imposes specific obligations on OTT Service Providers, including the mandatory use of Indonesia’s National Payment Gateway and Indonesian internet protocol numbers (Sections 5.5.5 and 5.5.6).
Coverage Over-the-Top (OTT) services

INDONESIA

Since March 2022

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
President Instruction No. 22/2022
In March 2022, the government of Indonesia issued President Instruction No. 22/2022, mandating all government agencies to spend at least 40% of their budget on local products produced by SMEs. According to the regulation, the objective is to increase the use of local products to support the "Proud of Using Products Made in Indonesia" campaign. The regulation entered into force on 30 March 2022.
Coverage Horizontal

INDONESIA

Since June 1997, entry into force in September 1997

Pillar Intellectual Property Rights (IPRs)  |  Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty
Indonesia is a party to the Patent Cooperation Treaty (PCT). However, the country does not consider itself bound by Art. 59 related to disputes.
Coverage Horizontal

INDONESIA

Since June 2012
Since October 2014

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Defence Law 2012

Presidential Regulation 76/2014
Indonesia's 2012 Defence Law and Presidential Regulation 76/2014 prioritise the use of local materials and components by defence agencies, emphasising the procurement of locally produced goods and services whenever possible. Additionally, in cases where Indonesian government entities procure from foreign defence suppliers due to local supply limitations, regulations mandate "trade balancing" offsets. These offsets can include incorporating local content, production offsets, technology transfer, or a combination of these measures.
Coverage Public sector

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